BlockBeats reports: On November 6, U.S. stocks were crushed overnight and into the morning, leaving markets in turmoil. Wall Street traders said today’s plunge was exacerbated by algorithmic and programmatic selling.
Goldman Sachs equity traders described today’s market action as “extremely painful.” Top Goldman trader John Flood noted that long-only institutions were once again in a bind, while the massive cloud-computing positions that hedge funds had bought during yesterday’s rebound were being rapidly dumped. “We have yet to see buyers step in to catch the falling knife.”
Several veteran traders described liquidity at the U.S. market open as “characteristic of a liquidation,” noting that programmatic selling by algorithms and CTA funds intensified the initial, near-vertical drop in the absence of buyers.
Goldman Sachs equity traders described today’s market action as “extremely painful.” Top Goldman trader John Flood noted that long-only institutions were once again in a bind, while the massive cloud-computing positions that hedge funds had bought during yesterday’s rebound were being rapidly dumped. “We have yet to see buyers step in to catch the falling knife.”
Several veteran traders described liquidity at the U.S. market open as “characteristic of a liquidation,” noting that programmatic selling by algorithms and CTA funds intensified the initial, near-vertical drop in the absence of buyers.